The Supreme Court has ordered the Pension Fund of Ukraine to annually index the average salary in calculating pensions, rather than replacing it with one-time supplements of 100\u2013135 hryvnias.<\/p>\n
The Pension Fund of Ukraine will be forced to reconsider its approach to pension recalculation. The Supreme Court has declared illegal the practice of replacing annual indexation with fixed supplements of 100\u2013135 hryvnias, while the basic average salary remained unchanged. This is reported by the publication “On Pension” with reference to the “Sudovo-Yuridychna Gazeta”.<\/p>\n
The case concerned a man who was awarded a pension back in March 2020. The average salary in Ukraine for 2017\u20132019 was taken as the basis for calculating his payments – 7,763.17 hryvnias. But during 2021\u20132024, the Pension Fund refused to index this amount to the coefficients established by the government.<\/p>\n
100 hryvnias instead of a real recalculation<\/p>\n
Instead of increasing the base rate, the PFU assigned fixed additional payments every year – from 100 to 135 hryvnias. Only in 2024 did the pensioner demand a proper recalculation, and after the fund refused, he went to court.<\/p>\n
In case No. 440\/74\/25, the plaintiff argued that the coefficients 1.11; 1.14; 1.197 and 1.0796 should be applied for the years of freezing – one for each missed year. The Poltava District Administrative Court fully supported the pensioner in February 2025, but the appeal overturned this decision.<\/p>\n
The Court of Appeal decided that in 2024 it would be sufficient to apply only the last coefficient 1.0796, \u201cignoring\u201d the coefficients for 2021\u20132023. It was this position that was overturned by the Supreme Court.<\/p>\n
What the Supreme Court explained<\/p>\n
The Administrative Court of Cassation emphasized: the norm of Part 2 of Article 42 of Law No. 1058-IV clearly requires increasing the average salary that was used as the basis for calculating payments when they were assigned. That is, not just any basic indicator is indexed, but the one from which a specific pension was calculated.<\/p>\n
The court also emphasized: if a by-law of the Cabinet of Ministers contradicts the law, the court is obliged to apply an act of higher legal force. The Pension Fund referred to paragraph 5 of Procedure No. 124, where the base value was indicated as 3,764.40 hryvnias (as of October 2017). However, this by-law cannot change the legislative mechanism of recalculation.<\/p>\n
How coefficients should be applied<\/p>\n
The Supreme Court explained: annual coefficients must be multiplied sequentially. That is, the new coefficient is applied to the amount that has already been increased for the previous year. The simplified formula for the aforementioned case looks like this:<\/p>\n
7,763.17 UAH \u00d7 1.11 \u00d7 1.14 \u00d7 1.197 \u00d7 1.0796.<\/p>\n
Appealing to the court in 2024 does not deprive the pensioner of the right to restore indexation for previous years – 2021, 2022 and 2023.<\/p>\n
What to do if your pension was \u201cfrozen\u201d with additional payments<\/p>\n
This decision creates a precedent for protecting the rights of pensioners whose payments have been held for years at fixed allowances instead of a real recalculation of the base indicator. The decision does not provide for automatic recalculation for all citizens, but it provides a clear legal algorithm for appealing the actions of the PFU.<\/p>\n
The basis for recalculation in each specific case is an individual analysis of the pension case, the date of assignment of payments and the indicators applied to them. First, you should contact the Pension Fund with a written application for recalculation, citing the Supreme Court decision in case No. 440\/74\/25. In case of refusal, appeal it in the administrative court.<\/p>","protected":false},"excerpt":{"rendered":"
The Supreme Court has ordered the Pension Fund of Ukraine to annually index the average salary in calculating pensions, rather than replacing it with one-time supplements of 100\u2013135 hryvnias. The Pension Fund of Ukraine will be forced to reconsider its approach to pension recalculation. The Supreme Court has declared illegal the practice of replacing annual […]<\/p>\n","protected":false},"author":1,"featured_media":11819,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,13],"tags":[],"class_list":["post-11818","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-actually","category-analytic"],"_links":{"self":[{"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/posts\/11818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/comments?post=11818"}],"version-history":[{"count":2,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/posts\/11818\/revisions"}],"predecessor-version":[{"id":11829,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/posts\/11818\/revisions\/11829"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/media\/11819"}],"wp:attachment":[{"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/media?parent=11818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/categories?post=11818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corporativ.info\/en\/wp-json\/wp\/v2\/tags?post=11818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}